Standard costs:
A)May be used in job order cost systems but not in process cost accounting systems.
B)Should be revised upward when actual costs are higher than expected because of waste and inefficiency.
C)Are the same for all companies in a given industry.
D)Are the costs that should be incurred to produce a product under normal conditions.

Question

Quizplus · Accepted Answer

Standard costs are the costs that should be incurred to produce a product under normal conditions, and they can be used in both job order cost systems and process cost accounting systems. They are not necessarily the same for all companies in a given industry, and they should not necessarily be revised upward when actual costs are higher than expected because of waste and inefficiency.

Standard Costs